Meatworkers at one of the state's biggest abattoirs are set to strike over a pay dispute that boils down to an argument over $2 a week.

The threat from John is that if they go on strike "we will shut the plant".

The row, which has pitched the owners of Bindaree Beef against the Meat Workers Union, will add further fuel to the current debate over industrial relations and the pay demands of unions.

Prime Minister Tony Abbott and Treasurer Joe Hockey have blamed unions for threatening the fragile state of businesses like SPC Ardmona and contributing to the closure of Toyota.

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At Bindaree Beef, an abattoir that employs 800 workers in Inverell, northern NSW, the Meat Workers Union is threatening rolling two and eight-hour stoppages from next week over a stalemate in settling a workplace agreement negotiated over the past 12 months.

Just 85 of the Bindaree workforce - roughly a tenth - voted to proceed with industrial action. The company fears union-led stoppages would cripple production at the plant which kills and processes 5600 cattle a week.

Bindaree received a $24 million federal government grant last year, negotiated by former New England independent Tony Windsor as party of Gillard government investments in clean energy, and has embarked on an expansion that led to it taking on 150 new employees last year.

The union has asked for a basic pay rise of 3 per cent for all slaughtermen, boners, carcass graders and cleaners at Bindaree. The company's final offer is 2.8 per cent on the basic wage, but it claims that production-based incentives mean the 3 per cent pay rise will be easily exceeded as production expands.

The latest offer means an extra $25 to $75 a week, depending on the grade of the worker. Sources close to Bindaree said the union's demand amounts to $27-$77, a difference of just $2 a week.

Bindaree workers receive an $80 ''attendance allowance'' for turning up to work five days in a row. Other conditions include the $5 a day ''awful allocation allowance'' paid to employees dealing with ''back tripe''.

A grade one slaughterman gets a $7 ''handling bonus'' for every animal processed over 20 - worth on average $77 a day. Under the former agreement, grade one slaughtermen and neck boners get a basic wage of $689.30 a week. Carcass graders get $643.70.

MWU-Newcastle general-secretary Grant Courtney said abattoir workers are the lowest paid in manufacturing and Bindaree owner John ''JR'' McDonald's offer amounted to an extra 0.2 per cent over the next 12 months, an increase of just $1.46 a week for the lowest grade worker.

''John has got away with paying low wage rises. The workforce hasn't taken him on in 16 years,'' Mr Courtney said. ''I rang John yesterday hoping for a meeting but he is conveniently on a cruise. I don't think they're interested in settling those terms of employment. The threat from John is that if they go on strike 'we will shut the plant'.''

The union has approval from Fair Work Australia to proceed with protected action but workers will meet next week to vote on any strike or overtime ban, Mr Courtney said.

Workplace Minister Eric Abetz is aware of the stand-off at Bindaree. A spokesman said the situation was being closely monitored.